petrochina company limited€¦ · 3 2.1.2 key financial data and financial indicators prepared...
TRANSCRIPT
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability
whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
PETROCHINA COMPANY LIMITED
(A joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Hong Kong Stock Exchange Stock Code: 857; Shanghai Stock Exchange Stock Code: 601857)
ANNOUNCEMENT
First Quarterly Report of 2019
1. Important Notice
1.1 The Board of Directors of PetroChina Company Limited (the “Company”), the
Supervisory Committee and the Directors, Supervisors and Senior Management of the
Company warrant that there are no material omissions from, or misrepresentation or
misleading statements contained in this quarterly report, and jointly and severally accept
full responsibility for the truthfulness, accuracy and completeness of the information
contained in this quarterly report.
1.2 This quarterly report has been considered and approved at the second meeting of the
Board of the Company in 2019. All Directors attended this meeting of the Board of
Directors.
1.3 Mr. Wang Yilin, Chairman of the Board, Mr. Hou Qijun, Director and President of the
Company, and Mr. Chai Shouping, Chief Financial Officer of the Company, warrant the
truthfulness, accuracy and completeness of the financial statements set out in this
quarterly report.
1.4 The financial statements of the Company and its subsidiaries (the “Group”) have been
prepared in accordance with the China Accounting Standards (“CAS”) and the
International Financial Reporting Standards (“IFRS”), respectively. The financial
statements set out in this quarterly report are unaudited.
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2. Basic Data of the Company
2.1 Key Financial Data and Financial Indicators
2.1.1 Key Financial Data and Financial Indicators Prepared under IFRS
Unit: RMB Million
Items
As at the end of
the reporting
period
As at the end of
the preceding
year
Changes from the end of the
preceding year to the end of
the reporting period (%)
Total assets 2,634,160 2,432,266 8.3
Equity attributable to
owners of the
Company 1,225,894 1,214,286 1.0
Items
From the
beginning of the
year to the end of
the reporting
period
From the beginning
of the preceding
year to the end of
the preceding
reporting period
Changes over the same
period of the preceding
year (%)
Net cash flows from
operating activities 62,022 61,802 0.4
Items
From the
beginning of the
year to the end of
the reporting
period
From the beginning
of the preceding
year to the end of
the preceding
reporting period
Changes over the same
period of the preceding
year (%)
Revenue 591,041 542,654 8.9
Net profit attributable to
owners of the
Company 10,255 10,153 1.0
Return on net assets (%) 0.8 0.8 -
Basic earnings per
share (RMB Yuan) 0.056 0.055 1.0
Diluted earnings per
share (RMB Yuan) 0.056 0.055 1.0
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2.1.2 Key Financial Data and Financial Indicators Prepared under CAS
Unit: RMB Million
Items
As at the end of
the reporting
period
As at the end of
the preceding
year
Changes from the end of
the preceding year to
the end of the reporting
period (%)
Total assets 2,634,448 2,432,558 8.3
Equity attributable to
equity holders of the
Company 1,226,174 1,214,570 1.0
Items
From the
beginning of the
year to the end of
the reporting
period
From the beginning of
the preceding year to the
end of the preceding
reporting period
Changes over the same
period of the preceding
year (%)
Net cash flows from
operating activities 62,022 61,802 0.4
Items
From the
beginning of the
year to the end of
the reporting
period
From the beginning of
the preceding year to the
end of the preceding
reporting period
Changes over the same
period of the preceding
year (%)
Operating income 591,041 542,654 8.9
Net profit attributable to
equity holders of the
Company 10,251 10,150 1.0
Net profit after
deducting non-
recurring profit/loss
items attributable to
equity holders of the
Company 13,731 12,348 11.2
Weighted average return
on net assets (%) 0.8 0.8 -
Basic earnings per
share (RMB Yuan) 0.056 0.055 1.0
Diluted earnings per
share (RMB Yuan) 0.056 0.055 1.0
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Unit: RMB Million
Non-recurring profit/loss items
Profit/(loss) from the
beginning of the year to the
end of the reporting period
Net profit on disposal of non-current assets 32
Government grants recognised in the income statement 188
Reversal of provisions for bad debts against receivables 1
Net gains on disposal of subsidiaries 5
Other non-operating income and expenses (4,826)
Sub-total (4,600)
Tax impact of non-recurring profit/loss items 1,128
Impact of non-controlling interests (8)
Total (3,480)
2.1.3 Differences between CAS and IFRS
√Applicable □Inapplicable
The consolidated net profit for the reporting period under IFRS and CAS were
RMB16,049 million and RMB16,045 million, respectively, with a difference of RMB4
million; the consolidated shareholders’ equity as at the end of the reporting period under
IFRS and CAS were RMB1,426,419 million and RMB1,426,700 million, respectively, with
a difference of RMB281 million, which was primarily due to the revaluation for assets other
than fixed assets and oil and gas properties revalued in 1999. During the restructuring in
1999, a valuation was carried out for assets and liabilities injected by China National
Petroleum Corporation. On December 19, 2017, 中國石油天然氣集團公司, the Chinese
name of CNPC was changed into 中國石油天然氣集團有限公司 (“CNPC” before and after
the change of name). The valuation results on assets other than fixed assets and oil and gas
properties were not recognised in the financial statements prepared under IFRS.
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2.2 Total Number of Shareholders, Shareholdings of Top Ten Shareholders and Shareholdings
of Top Ten Holders of Marketable Shares (or Shareholders of Shares Without Selling
Restrictions) as at the end of the Reporting Period
Total number of
shareholders as
at the end of the
reporting period
533,290 shareholders including 526,781 holders of A shares and 6,509 overseas holders of H
shares (including 164 registered holders of the American Depository Shares).
Shareholdings of the top ten shareholders
Name of
shareholder
Nature of
shareholder
Percentage of
shareholding
(%)
Number of shares
held
Number of
shares with
selling
restrictions
Number of shares
pledged or subject to
lock-ups
CNPC State-owned 80.87 148,010,665,536(1)
0 0
HKSCC Nominees
Limited(2)
Overseas legal
person 11.41 20,883,204,087 (3)
0 0
CNPC-CSC-17
CNPC E2 Pledge
and Trust Special
Account
State-owned
legal person 2.09 3,819,989,252 0 3,819,989,252
CNPC-CSC-17
CNPC EB Pledge
and Trust Special
Account
State-owned
legal person 1.12 2,051,488,603 0 2,051,488,603
China Securities
Finance
Corporation
Limited
State-owned
legal person 0.62 1,139,138,704 0 0
Beijing Chengtong
Financial Holding
Investment Co. Ltd.
State-owned
legal person 0.53 972,762,646 0 0
Guoxin Investment
Co., Ltd.
State-owned
legal person 0.44 797,794,036 0 0
China Baowu Steel
Group Corporation
Limited
State-owned
legal person 0.34 624,000,000 0 0
Ansteel Group
Corporation
State-owned
legal person 0.24 440,000,000 0 0
Hong Kong
Securities Clearing
Company Limited
(HKSCC)(4)
Overseas legal
person 0.13 229,807,062 0 0
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Shareholdings of the top ten shareholders of shares without selling restrictions
Name of shareholders Number of shares held Type of shares
CNPC 148,010,665,536 A Shares
HKSCC Nominees Limited 20,883,204,087 H Shares
CNPC-CSC-17 CNPC E2 Pledge and
Trust Special Account 3,819,989,252 A Shares
CNPC-CSC-17 CNPC EB Pledge and
Trust Special Account 2,051,488,603 A Shares
China Securities Finance Corporation
Limited 1,139,138,704 A Shares
Beijing Chengtong Financial Holding
Investment Co. Ltd. 972,762,646 A Shares
Guoxin Investment Co., Ltd. 797,794,036 A Shares
China Baowu Steel Group Corporation 624,000,000 A Shares
Ansteel Group Corporation 440,000,000 A Shares
Hong Kong Securities Clearing
Company Limited (HKSCC) 229,807,062 A Shares
Statement on constitution of affiliation or parties acting in concert among shareholders above:
Save for that both HKSCC Nominees Limited and Hong Kong Securities Clearing Company Limited are
wholly-owned subsidiaries of Hong Kong Exchanges and Clearing Limited, the Company is not aware of any
affiliation among the above ten shareholders or any one of them constituting parties acting in concert under the
Administrative Measures for the Takeover of Listed Companies.
Notes:(1)Such figure excludes the H shares indirectly held by CNPC through Fairy King Investments Limited, an
overseas wholly-owned subsidiary of CNPC.
(2)HKSCC Nominees Limited is a wholly-owned subsidiary of the Hong Kong Exchanges and Clearing Limited
and acts as a nominee on behalf of other corporate or individual shareholders to hold the H shares of the
Company.
(3)291,518,000 H shares were indirectly held by CNPC through Fairy King Investments Limited, an overseas
wholly-owned subsidiary of CNPC, representing 0.16% of the total share capital of the Company. These
shares were held in the name of HKSCC Nominees Limited.
(4)Hong Kong Securities Clearing Company Limited is a wholly-owned subsidiary of the Hong Kong
Exchanges and Clearing Limited and, acting as a nominee holder, holds the A shares of the Company listed
on the Shanghai Stock Exchange and invested by investors through The Stock Exchange of Hong Kong
Limited.
2.3 Number of Shareholders of Preferred Shares, Shareholdings of Top Ten Shareholders of
Preferred Shares and Shareholdings of Top Ten Shareholders of Preferred Shares without
Selling Restrictions as at the end of the Reporting Period
□Applicable √Inapplicable
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2.4 Business Review
In the first quarter of 2019, the world economy grew at a slower pace with a greater
downward pressure and risks of uncertainty. The economy of China continued to operate
within a reasonable range and maintained its tendency to be generally steady with certain
progress. In terms of the gross domestic productivity (GDP), there was a stable start for the
year as it increased by 6.4% as compared with the same period of last year. The supply and
demand in the international oil market moved towards a balanced state. The international oil
prices fluctuated upwards and the average price decreased as compared with the same period
of last year. The average spot price of the West Texas Intermediate crude oil was US$54.87 per
barrel, representing a decrease of 12.8% as compared with the same period of last year, and the
average spot price of North Sea Brent crude oil was US$63.13 per barrel, representing a
decrease of 5.5% as compared with the same period of last year. While the growth of domestic
refined oil consumption slowed down, the supply remained abundant.
Facing the complicated operational situation, the Group adhered to the guidelines of
stable development, devoted major efforts to high-quality development, intensified the
measures for broadening sources of income, reducing expenditures as well as cutting cost and
enhancing efficiency, and sped up structural adjustment. The Group grasped the favourable
opportunities offered by the upward movement of international oil price and the relatively fast
growth of demand in the natural gas market to intensify the production and operation of its
two business chains of oil and gas. As a result, the production and operation activities of the
Group achieved a good start for the year. In the first quarter of 2019, the Group achieved a
revenue of RMB591,041 million under IFRS, representing an increase of 8.9% from
RMB542,654 million as compared with the same period of last year. The net profit
attributable to owners of the company amounted to RMB10,255 million, representing an
increase of 1.0% from RMB10,153 million as compared with the same period of last year.
In respect of exploration and production, the Group continued to optimise its exploration
deployment, consolidated the resource base for maintaining the stability in oil production and
increasing gas output, accelerated the build-up of the oil and gas production capacity, which
led to an increase in the output of oil and gas as compared with the same period of last year.
In the first quarter of 2019, crude oil output of the Group was 223.4 million barrels,
representing an increase of 4.6% as compared with the same period of last year. Marketable
natural gas output of the Group amounted to 999.9 billion cubic feet, representing an increase
of 8.9% as compared with the same period of last year. The oil and gas equivalent output was
390.1 million barrels, representing an increase of 6.4% as compared with the same period of
last year, of which the domestic oil and gas equivalent output was 337.5 million barrels,
representing an increase of 5.0% as compared with the same period of last year, and the
overseas oil and gas equivalent output was 52.6 million barrels, representing an increase of
16.0% as compared with the same period of last year. In the first quarter of 2019, in the
exploration and production segment, the Group adhered to the low-cost strategy and devoted
major efforts to broadening sources of income, reducing expenditures as well as cutting cost
and enhancing efficiency. The oil and gas lifting cost decreased by 1.5% as compared with
the same period of last year. Benefit from the combined impacts arising out of the increasing
efforts on cost control, the Group’s exploration and production segment achieved a profit
from operations of RMB14,326 million, representing an increase of 47.1% as compared with
RMB9,741 million for the same period of last year.
In respect of refining and chemicals, the Group adjusted and optimised the allocation of
resources and the structure of products based on market demands, increased the production of
merchantable and high-profit products and reasonably adjusted the ratio of diesel to gasoline
in its production from 1.25 for the same period of last year to 1.07 this year. The Group
grasped the market opportunities arising in connection with the growth of needs for chemical
products and continuously improved the processing load of its chemical production facilities,
which resulted in an increase of 3.9% in the outputs of chemical commodity products as
compared with the same period of last year. In the first quarter of 2019, the Group processed
an aggregate amount of 291.6 million barrels of crude oil, representing an increase of 3.3% as
compared with the same period of last year. The Group produced 27.708 million tons of
gasoline, diesel and kerosene, representing an increase of 5.8% as compared with the same
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period of last year. In the first quarter of 2019, the profit from operations of refining and
chemicals segment amounted to RMB2,999 million, representing a decrease of 5,442 million
as compared with the profit from operations of RMB8,441 million for the same period of last
year. The refining operations achieved a profit from operations of RMB46 million,
representing a decrease of 3,860 million as compared with the profit from operations of
RMB3,906 million for the same period of last year, mainly due to adverse effect in profit
from inventories and the effect of internal price marketization. The chemicals operations
achieved a profit from operations of RMB2,953 million, representing a decrease of 1,582
million as compared with the profit from operations of RMB4,535 million for the same period
of last year, mainly due to the decrease in gross profit of chemical products .
In respect of marketing, grasping the favourable opportunities arising out in connection
with the rise in the price of refined products, the Group promptly adjusted its marketing
strategies based on the market conditions, kept expanding and increasing sales, and secured
smooth back-up channels for refineries. The Group developed overseas high-profitability
markets to ensure a smooth operation of the industrial chain and at the same time to improve
the overall profitability. The Group sold 42.057 million tons of gasoline, diesel and kerosene,
representing a decrease of 0.8% as compared with the same period of last year. In the first
quarter of 2019, as a result of the increase in the gross profit of refined products and the
increased profitability of marketing measures, the Group achieved a profit from operations of
RMB3,517 million in the marketing segment, representing an increase of 88.6% as compared
with the profit from operations of RMB1,865 million for the same period of last year.
In respect of natural gas and pipeline, the Group coordinated the utilisation of various
resources such as domestically produced gas, imported gas and liquefied natural gas (“LNG”)
and optimised the transportation and sale plan of natural gas. The Group continued to develop
certain major high-profitability markets and to effectively enhance sales efficiency. At the
same time, the Group also accelerated the development of the natural gas pipeline network
which was interconnected under a rationalised layout and was also safe and efficient. In the
first quarter of 2019, as a result of the rise in the price and sales of natural gas as compared
with the same period of last year, the profit from operations of the natural gas and pipeline
segment amounted to RMB12,582 million, representing an increase of 12.5% as compared
with RMB11,187 million for the same period of last year. Among which, the Group made
great efforts to take effective actions to control the loss incurred from sales of imported gas
and LNG in the natural gas and pipeline segment, and the net loss incurred amounted to
RMB3,289 million with an increase in sales volume, representing a decrease in net loss of
RMB2,535 million from the net loss of RMB5,824 million of last year.
In the first quarter of 2019, the average realised price for crude oil of the Group was
US$59.53 per barrel, representing a decrease of 5.8% as compared with the same period of
last year, among which the domestic realised price was US$59.38 per barrel, representing a
decrease of 6.5% as compared with the same period of last year; the average realised price for
natural gas was US$6.63 per thousand cubic feet, representing an increase of 4.7% as
compared with the same period of last year, among which the domestic realised price was
US$6.55 per thousand cubic feet, representing an increase of 10.5% as compared with the
same period of last year.
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Summary of Key Operating Data for the First Quarter of 2019
Operating Data Unit
For the three
months ended
March 31
Changes over the
same period of the
preceding year (%) 2019 2018
Crude oil output Million barrels 223.4 213.7 4.6
of which: domestic Million barrels 182.7 180.0 1.5
overseas Million barrels 40.7 33.7 21.0
Marketable natural gas output Billion cubic feet 999.9 918.5 8.9
of which: domestic Billion cubic feet 928.8 848.5 9.5
overseas Billion cubic feet 71.1 70.0 1.5
Oil and natural gas equivalent
output Million barrels
390.1 366.8 6.4
of which: domestic Million barrels 337.5 321.5 5.0
overseas Million barrels 52.6 45.3 16.0
Processed crude oil Million barrels 291.6 282.2 3.3
Gasoline, kerosene and diesel
output Thousand tons
27,708 26,181 5.8
of which: Gasoline Thousand tons 12,032 10,594 13.6
Kerosene Thousand tons 2,790 2,376 17.4
Diesel Thousand tons 12,886 13,211 (2.5)
Total sales volume of gasoline,
kerosene and diesel Thousand tons
42,057 42,409 (0.8)
of which: Gasoline Thousand tons 17,762 17,657 0.6
Kerosene Thousand tons 4,544 4,382 3.7
Diesel Thousand tons 19,751 20,370 (3.0)
Operating Data Unit
For the three
months ended
March 31
Changes over the
same period of the
preceding year (%) 2019 2018
Output of key chemical products
Ethylene Thousand tons 1,560 1,463 6.6
Synthetic resin Thousand tons 2,479 2,370 4.6
Synthetic fiber raw materials
and polymers Thousand tons
372 384 (3.1)
Synthetic rubber Thousand tons 243 235 3.4
Urea Thousand tons 0 70 (100.0)
Note: Figures have been converted at the rate of 1 ton of crude oil = 7.389 barrels and 1 cubic metre of
natural gas = 35.315 cubic feet.
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3 Significant Events
3.1 Significant changes in key accounting items and financial indicators under CAS and
explanation of such changes
√Applicable □Inapplicable
Unit: RMB Million
Items March 31,
2019
December 31,
2018
Changes
(%) Key explanation of the changes
Cash at bank and
on hand 124,081 95,133 30.4
Mainly due to the change of fund
position of the Company
Advances to
suppliers 33,338 17,103 94.9
Mainly due to the increase in
prepayments such as those for goods
and materials
Right-of-use
assets 182,133 - -
In accordance with the Accounting
Standards for Enterprises No.21 –
Lease Standards (the “new lease
standard”) effective from January 1,
2019, the comparative financial
statements no longer need adjustment
in respect of the recognition of the
right-of-use assets (please refer to 3.6
Other significant events)
Long-term prepaid
expenses 9,181 28,529 (67.8)
Mainly due to the fact that advances of
leasing which used to be classified as
long-term prepaid expenses are
classified as the right-of-use assets
Short-term
borrowings 99,906 62,368 60.2
Mainly due to the increase of
borrowings for production and
operation
Other payables 48,383 33,808 43.1 Mainly due to the increase in other
payables recognized based on volume
of business
Current portion
of non-current
liabilities
35,584 75,370 (52.8) Mainly used to repay the long-term
borrowings and debentures payable due
within one year
Debentures
payable 131,692 91,817 43.4
Mainly due to the issuance of
debentures of RMB40 billion in the
first quarter of 2019
Lease liabilities 163,171 - -
In accordance with the new lease
standard effective from January 1,
2019, the comparative financial
statements no longer need adjustment
in respect of the recognition of the
lease liabilities (please refer to 3.6
Other significant events)
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Items
For the three months ended
March 31 Changes
(%) Key explanation of the changes
2019 2018
Interest
expenses 7,602 5,593 35.9
Mainly due to the generation of interest
expense for recognition of lease liabilities
according to the new lease standard
Interest income 797 581 37.2 Mainly due to the increase in the interests
of bank deposits
Asset
impairment
losses
6 (4) - Mainly due to the reversal of write down in
inventories
Credit losses (92) - - Mainly due to increase of the provision for
bad debts of accounts receivables
Gains on asset
disposal 18 81 (77.8)
Mainly due to the decrease in gains on
disposal of non-current assets
Other
comprehensive
income, net of
tax
(784) (4,960) (84.2)
Mainly due to the change of translation
differences arising from translation of
foreign currency financial statements of
overseas subsidiaries under the influence of
exchange rates
Other
comprehensive
income
attributable to
equity holders
of the
Company, net
of tax
100 (3,800) -
Translation
differences
arising from
translation of
foreign currency
financial
statements
(18) (3,600) (99.5)
Total
comprehensive
income
15,261 10,249 48.9
Mainly due to the change of other
comprehensive income, net of tax
Total
comprehensive
income
attributable to
equity holders
of the Company
10,351 6,350 63.0
Net cash flows
from financing
activities
28,053 (8,049) - Mainly due to the decrease in cash
repayments of borrowings
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3.2 Developments and impacts of significant events as well as the analysis of and explanation
for the solutions
□Applicable √Inapplicable
3.3 Status of fulfilment of undertaking given by the Company, shareholders and ultimate
controller
√Applicable □Inapplicable
During the reporting period, the undertaking given by CNPC, the controlling shareholder
of the Company, and the fulfilment thereof were consistent with the information disclosed in
the section headed “Significant Events” of the 2018 Annual Report of the Company. There
have been no events affecting the performance of these undertakings.
3.4 Caution and explanation as to the anticipated accumulated losses or significant changes
over the same period of the preceding year
□Applicable √Inapplicable
3.5 Securities investment
□Applicable √Inapplicable
3.6 Other significant events
√Applicable □Inapplicable
Changes in significant accounting policies
3.6.1 Changes and impact of CAS
The Ministry of Finance (“MOF”) issued a new accounting standard on leases in 2018.
The new lease standard is a revision of the Accounting Standard for Business Enterprises No.
21 – Leases issued by MOF in 2006 (the “old lease standard”). The Group has adopted the
new lease standard since January 1, 2019, and adjusted the accounting policies accordingly.
The new lease standard refines the definition of lease. The Group assesses whether a
contract is a lease or contains any lease based on the revised definition of lease under the new
lease standard. As to the contracts existing prior to the initial application of the new lease
standard, the Group elects not to reassess whether they are leases or contain any lease on the
date of initial application of the new lease standard.
Under the old lease standard, the Group, as a lessee, classifies a lease into a finance lease
or an operating lease based on the assessment of whether the lease has transferred substantially
all the risks and rewards related to the ownership of an asset to the Group.
The Group elects to adjust the opening balance of retained earnings and other related
financial statement items for the year in which the new lease standard is initially applied, by
the accumulated adjustments arising from the initial application of the new lease standard, and
not to adjust the comparative figures.
As to the operating leases existing prior to the date of initial application, the Group
measures the lease liabilities at the present value of the outstanding lease payment, discounted
at the incremental borrowing rate as at the date of initial application, and measures the right-
of-use assets based on an amount equal to the lease liabilities, with necessary adjustments to
the prepaid rents.
13
Under the new lease standard, the Group recognised right-of-use assets of RMB181,782
million and RMB182,133 million and lease liabilities of RMB163,196 million and
RMB163,171 million respectively as at January 1, 2019 and March 31, 2019.
3.6.2 Changes and impacts of IFRS
The Group has initially applied IFRS No.16 — Lease (“IFRS 16”) since January 1, 2019.
IFRS 16 introduced a single, on-balance sheet accounting model for lessees. As a result,
the Group, as a lessee, has recognised right-of-use assets representing its rights to use
underlying assets and lease liabilities representing its obligation to make lease payments.
Lessor accounting remains the same with the previous policies.
The Group has applied IFRS 16 using the modified retrospective approach. The
comparative information presented for 2018 has not been restated .
As a lessee, the Group previously classified leases as operating or finance leases based on
its assessment of whether the lease has transferred substantially all the risks and rewards
related to the ownership of the underlying asset. Under IFRS 16, the Group recognises right-
of-use assets and lease liabilities for lease arrangements excluding short-term leases and leases
with low-value assets - i.e. these lease arrangements are presented on-balance sheet.
However, the Group elected not to recognise right-of-use assets and lease liabilities for
short-term leases and leases with low-value assets. The Group recognises the lease payments
associated with these leases in profit or loss or as an expense on a straight-line basis over the
lease term.
The Group recognised right-of-use assets of RMB240,642 million and RMB241,539
million and the lease liabilities of RMB163,196 million and RMB163,171 million respectively
as at January 1, 2019 and March 31, 2019.
The difference in the recognition of right-of use assets for the initial adoption of the new
lease standard under IFRS and CAS arose from the difference of the presentation of the
Chinese land use right in the financial statements between the two standards.
3.6.3 VAT rate and pipeline transportation price adjustment
On March 20, 2019, the MOF, the State Administration of Taxation, and the General
Administration of Customs issued the Notice on Deepening the Policies Related to Value-
Added Tax Reform (Announcement No. 39 of 2019 of the General Administration of Customs
of the Ministry of Finance and the State Administration of Taxation). In order to further
implement tax cuts and deepen the reform of value-added tax, from April 1, 2019, the current
16% rate for industries such as manufacturing is reduced to 13%, and the current 10% rate for
industries such as transportation and construction is reduced to 9%. The tax rate of 6% keeps
unchanged.
On March 29, 2019, the National Development and Reform Commission issued the
Notice on Adjusting the Inter-provincial Pipeline Transportation Price of Natural Gas.
According to the adjustment of the VAT rate, it was decided to adjust the pipeline
transportation prices of 13 inter-provincial pipeline transportation enterprises such as
PetroChina Beijing Natural Gas Pipeline Co., Ltd. from April 1, 2019.
The above matters do not affect the continuity of the business of the Group and the
stability of the management, which is conducive to the continued healthy development of the
Group’s businesses and the continued improvement of its future financial position and
operating results.
14
By Order of the Board of Directors
PetroChina Company Limited
Wang Yilin
Chairman
Beijing, the PRC
April 29, 2019
As at the date of this announcement, the Board of Directors of the Company comprises Mr. Wang Yilin as the Chairman; Mr. Liu Yuezhen, Mr. Liu Hongbin and Mr. Duan Liangwei as non-
executive Directors; Mr. Hou Qijun as an executive Director; and Mr. Lin Boqiang, Mr. Zhang
Biyi, Ms. Elsie Leung Oi-sie, Mr. Tokuchi Tatsuhito and Mr. Simon Henry as independent non-executive Directors.
This announcement is published in English and Chinese. In the event of any inconsistency between the two versions, the Chinese version shall prevail.
15
Appendix
A. Financial statements for the first quarter of 2019 prepared in accordance with CAS
1. Consolidated Balance Sheet
ASSETS
March 31, 2019 December 31, 2018
RMB million RMB million
Current assets
Cash at bank and on hand 124,081 95,133
Notes and accounts receivable 91,581 74,815
Advances to suppliers 33,338 17,103
Other receivables 20,989 17,123
Inventories 169,947 174,586
Other current assets 59,202 54,368
Total current assets 499,138 433,128
Non-current assets
Investments in other equity instruments 939 760
Long-term equity investments 91,757 89,432
Fixed assets 672,984 685,848
Oil and gas properties 781,013 800,475
Construction in progress 221,108 219,594
Intangible assets 77,489 77,261
Right-of-use assets 182,133 -
Goodwill 42,128 42,273
Long-term prepaid expenses 9,181 28,529
Deferred tax assets 24,967 23,498
Other non-current assets 31,611 31,760
Total non-current assets 2,135,310 1,999,430
TOTAL ASSETS 2,634,448 2,432,558
Chairman Director and President Chief Financial Officer
Wang Yilin Hou Qijun Chai Shouping
16
1. Consolidated Balance Sheet (Continued)
LIABILITIES AND
SHAREHOLDERS’ EQUITY
March 31, 2019 December 31, 2018
RMB million RMB million
Current liabilities
Short-term borrowings 99,906 62,368
Notes and accounts payable 225,186 252,994
Contract liabilities 76,529 68,076
Employee compensation payable 12,797 10,087
Taxes payable 68,339 82,744
Other payables 48,383 33,808
Current portion of non-current liabilities 35,584 75,370
Other current liabilities 949 939
Total current liabilities 567,673 586,386
Non-current liabilities
Long-term borrowings 179,353 177,605
Debentures payable 131,692 91,817
Lease liabilities 163,171 -
Provisions 134,513 132,780
Deferred tax liabilities 17,280 17,022
Other non-current liabilities 14,066 16,005
Total non-current liabilities 640,075 435,229
Total liabilities 1,207,748 1,021,615
Shareholders’ equity
Share capital 183,021 183,021
Capital surplus 128,710 128,683
Special reserve 15,057 13,831
Other comprehensive income (32,297) (32,397)
Surplus reserves 194,245 194,245
Undistributed profits 737,438 727,187
Equity attributable to equity holders of the
Company 1,226,174 1,214,570
Non-controlling interests 200,526 196,373
Total shareholders’ equity 1,426,700 1,410,943
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY 2,634,448 2,432,558
Chairman Director and President Chief Financial Officer
Wang Yilin Hou Qijun Chai Shouping
17
2. Company Balance Sheet
ASSETS
March 31, 2019 December 31, 2018
RMB million RMB million
Current assets
Cash at bank and on hand 33,072 15,309
Notes and accounts receivable 19,270 18,334
Advances to suppliers 21,865 6,267
Other receivables 16,226 14,316
Inventories 107,683 114,952
Other current assets 45,339 46,082
Total current assets 243,455 215,260
Non-current assets
Investments in other equity instruments 450 390
Long-term equity investments 393,095 388,818
Fixed assets 330,702 337,629
Oil and gas properties 544,604 557,121
Construction in progress 151,385 151,366
Intangible assets 59,121 58,890
Right-of-use assets 105,283 -
Long-term prepaid expenses 6,648 22,761
Deferred tax assets 18,295 17,910
Other non-current assets 7,772 7,884
Total non-current assets 1,617,355 1,542,769
TOTAL ASSETS 1,860,810 1,758,029
Chairman Director and President Chief Financial Officer
Wang Yilin Hou Qijun Chai Shouping
18
2. Company Balance Sheet (Continued)
LIABILITIES AND
SHAREHOLDERS’ EQUITY
March 31, 2019 December 31, 2018
RMB million RMB million
Current liabilities
Short-term borrowings 82,760 61,873
Notes and accounts payable 91,715 121,473
Contract liabilities 53,914 47,184
Employee compensation payable 10,134 7,906
Taxes payable 41,775 58,734
Other payables 69,046 43,862
Current portion of non-current liabilities 21,923 63,028
Other current liabilities 224 217
Total current liabilities 371,491 404,277
Non-current liabilities
Long-term borrowings 72,152 72,166
Debentures payable 125,000 85,000
Lease liabilities 89,705 -
Provisions 93,332 92,017
Other non-current liabilities 6,845 8,489
Total non-current liabilities 387,034 257,672
Total liabilities 758,525 661,949
Shareholders’ equity
Share capital 183,021 183,021
Capital surplus 127,859 127,859
Special reserve 8,183 7,373
Other comprehensive income 630 505
Surplus reserves 183,153 183,153
Undistributed profits 599,439 594,169
Total shareholders’ equity 1,102,285 1,096,080
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY 1,860,810 1,758,029
Chairman Director and President Chief Financial Officer
Wang Yilin Hou Qijun Chai Shouping
19
3. Consolidated Income Statement
Three months ended March 31
2019 2018
Items RMB million RMB million
Operating income 591,041 542,654
Less: Cost of sales (469,670) (430,823)
Taxes and surcharges (55,034) (49,665)
Selling expenses (16,326) (15,323)
General and administrative expenses (14,667) (15,030)
Research and development expenses (3,580) (2,828)
Finance expenses (7,423) (6,070)
Including: Interest expenses 7,602 5,593
Interest income 797 581
Asset impairment losses 6 (4)
Credit losses (92) -
Add: Other income 2,522 2,086
Investment income 2,478 2,148 Including: Income from investment in
associates and joint ventures 2,341 2,088
Gains on asset disposal 18 81
Operating profit 29,273 27,226
Add: Non-operating income 550 443
Less: Non-operating expenses (5,239) (3,379)
Profit before taxation 24,584 24,290
Less: Taxation (8,539) (9,081)
Net profit 16,045 15,209
Classified by continuity of operations:
Net profit from continuous operation 16,045 15,209
Net profit from discontinued operation - -
Classified by ownership:
Shareholders of the Company 10,251 10,150
Non-controlling interests 5,794 5,059
Earnings per share
Basic earnings per share (RMB Yuan) 0.056 0.055
Diluted earnings per share (RMB Yuan) 0.056 0.055
Other comprehensive income (784) (4,960) Other comprehensive income attributable to equity
holders of the Company, net of tax
100 (3,800)
(1) Items that will not be reclassified to profit or loss: Changes in fair value of investments in other
equity instruments
35 50
(2) Items that may be reclassified to profit or loss: Share of other comprehensive income of equity-
accounted investee
83 (250) Translation differences arising from translation of
foreign currency financial statements
(18) (3,600) Other comprehensive income (net of tax) attributable
to non-controlling interests
(884) (1,160)
Total comprehensive income 15,261 10,249
Attributable to:
Equity holders of the Company 10,351 6,350
Non-controlling interests 4,910 3,899
Chairman Director and President Chief Financial Officer
Wang Yilin Hou Qijun Chai Shouping
20
4. Income Statement
Three months ended March 31
2019 2018
Items RMB million RMB million
Operating income 347,061 323,795
Less: Cost of sales (269,272) (246,745)
Taxes and surcharges (43,194) (39,834)
Selling expenses (11,234) (10,611)
General and administrative expenses (11,509) (10,947)
Research and development expenses (1,761) (1,535)
Finance expenses (5,303) (4,447)
Including: Interest expenses 5,286 4,416
Interest income 228 252
Asset impairment losses (2) (24)
Credit losses (73) -
Add: Other income 2,227 1,635
Investment income 681 6,173
Including: Income from investment in
associates and joint ventures 930 855
Gains on asset disposal 20 103
Operating profit 7,641 17,563
Add: Non-operating income 389 321
Less: Non-operating expenses (1,078) (3,198)
Profit before taxation 6,952 14,686
Less: Taxation (1,682) (5,382)
Net profit 5,270 9,304
Classified by continuity of operations:
Net profit from continuous operation 5,270 9,304
Net profit from discontinued operation - -
Earnings per share
Basic earnings per share (RMB Yuan) 0.029 0.051
Diluted earnings per share (RMB Yuan) 0.029 0.051
Other comprehensive income 125 (350)
(1) Items that will not be reclassified to profit or loss:
Changes in fair value of investments in other
equity instruments
45 (31)
(2) Items that may be reclassified to profit or loss:
Share of other comprehensive income of equity-
accounted investee
80 (319)
Total comprehensive income 5,395 8,954
Chairman Director and President Chief Financial Officer
Wang Yilin Hou Qijun Chai Shouping
21
5. Consolidated Cash Flow Statement
Items
Three months ended March 31
2019 2018
RMB million RMB million
Cash flows from operating activities
Cash received from sales of goods and rendering of services 668,029 609,010
Refund of taxes 353 1,093
Cash received relating to other operating activities 290 414
Sub-total of cash inflows 668,672 610,517
Cash paid for goods and services (460,269) (413,488)
Cash paid to and on behalf of employees (30,553) (28,074)
Payments of various taxes (108,388) (93,121)
Cash paid relating to other operating activities (7,440) (14,032)
Sub-total of cash outflows (606,650) (548,715)
Net cash flows from operating activities 62,022 61,802
Cash flows from investing activities
Cash received from disposal of investments 1,629 9,774
Cash received from returns on investments 780 1,047
Net cash received from disposal of fixed assets, oil and gas
properties, intangible assets and other long-term assets 53
16
Sub-total of cash inflows 2,462 10,837
Cash paid to acquire fixed assets, oil and gas properties,
intangible assets and other long-term assets (60,872)
(59,281)
Cash paid to acquire investments (245) (445)
Sub-total of cash outflows (61,117) (59,726)
Net cash flows used for investing activities (58,655) (48,889)
Chairman Director and President Chief Financial Officer
Wang Yilin Hou Qijun Chai Shouping
22
5. Consolidated Cash Flow Statement (Continued)
Items
Three months ended March 31
2019 2018
RMB million RMB million
Cash flows from financing activities
Cash received from capital contributions 47 99
Including: Cash received from non-controlling
interests’ capital contributions to subsidiaries 47
99
Cash received from borrowings 236,358 232,444
Cash received relating to other financing activities - 9
Sub-total of cash inflows 236,405 232,552
Cash repayments of borrowings (195,031) (234,194)
Cash payments for interest expenses and distribution
of dividends or profits (6,043)
(6,313)
Including: Subsidiaries’ cash payments for
distribution of dividends or profits to non-
controlling interests (472)
(389)
Capital reduction of subsidiaries (10) (94)
Cash payments relating to other financing activities (7,268) -
Sub-total of cash outflows (208,352) (240,601)
Net cash flows from financing activities 28,053 (8,049)
Effect of foreign exchange rate changes on cash and
cash equivalents (1,004)
(2,071)
Net increase in cash and cash equivalents 30,416 2,793
Add: Cash and cash equivalents at beginning of the
period 85,598
122,777
Cash and cash equivalents at end of the period 116,014 125,570
Chairman Director and President Chief Financial Officer
Wang Yilin Hou Qijun Chai Shouping
23
6. Company Cash Flow Statement
Items
Three months ended March 31
2019 2018
RMB million RMB million
Cash flows from operating activities
Cash received from sales of goods and rendering of services 401,019 370,329
Refund of various taxes 353 809
Cash received relating to other operating activities 15,452 8,940
Sub-total of cash inflows 416,824 380,078
Cash paid for goods and services (273,281) (244,655)
Cash paid to and on behalf of employees (13,079) (19,348)
Payments of various taxes (74,377) (70,885)
Cash paid relating to other operating activities (5,495) (5,764)
Sub-total of cash outflows (366,232) (340,652)
Net cash flows from operating activities 50,592 39,426
Cash flows from investing activities
Cash received from disposal of investments 2,575 14,195
Cash received from returns on investments 289 5,537
Net cash received from disposal of fixed assets, oil and gas
properties, intangible assets and other long-term assets 49
125
Sub-total of cash inflows 2,913 19,857
Cash paid to acquire fixed assets, oil and gas properties,
intangible assets and other long-term assets (42,342)
(39,160)
Cash paid to acquire investments (6,990) (14,216)
Sub-total of cash outflows (49,332) (53,376)
Net cash flows used for investing activities (46,419) (33,519)
Chairman Director and President Chief Financial Officer
Wang Yilin Hou Qijun Chai Shouping
24
6. Company Cash Flow Statement (Continued)
Items
Three months ended March 31
2019 2018
RMB million RMB million
Cash flows from financing activities
Cash received from borrowings 108,481 83,601
Cash received relating to other financing activities - 10
Sub-total of cash inflows 108,481 83,611
Cash repayments of borrowings (88,724) (80,841)
Cash payments for interest expenses and distribution of
dividends or profits (4,150)
(5,119)
Cash payments relating to other financing activities (2,017) -
Sub-total of cash outflows (94,891) (85,960)
Net cash flows from financing activities 13,590 (2,349)
Effect of foreign exchange rate changes on cash and
cash equivalents - -
Net increase in cash and cash equivalents 17,763 3,558
Add: Cash and cash equivalents at beginning of the
period 13,109
44,432
Cash and cash equivalents at end of the period 30,872 47,990
Chairman Director and President Chief Financial Officer
Wang Yilin Hou Qijun Chai Shouping
25
B. Financial statements for the first quarter of 2019 prepared in accordance with IFRS
1. Consolidated Statement of Comprehensive Income
Three months ended March 31
2019 2018
RMB million RMB million
REVENUE 591,041 542,654
OPERATING EXPENSES
Purchases, services and other (394,315) (359,539)
Employee compensation costs (32,792) (30,083)
Exploration expenses, including exploratory dry holes (6,202) (6,198)
Depreciation, depletion and amortisation (55,010) (51,483)
Selling, general and administrative expenses (15,995) (16,705)
Taxes other than income taxes (55,263) (49,900)
Other expense, net (2,027) (706)
TOTAL OPERATING EXPENSES (561,604) (514,614)
PROFIT FROM OPERATIONS 29,437 28,040
FINANCE COSTS
Exchange gain 1,967 3,042
Exchange loss (2,352) (3,865)
Interest income 797 581
Interest expense (7,602) (5,593)
TOTAL NET FINANCE COSTS (7,190) (5,835)
SHARE OF PROFIT OF ASSOCIATES AND
JOINT VENTURES 2,341 2,088
PROFIT BEFORE INCOME TAX EXPENSE 24,588 24,293
INCOME TAX EXPENSE (8,539) (9,081)
PROFIT FOR THE PERIOD 16,049 15,212
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to profit or loss
Fair value loss from financial assets measured at fair
value through other comprehensive income 96 50
Items that are or may be reclassified subsequently to
profit or loss
Currency translation differences (963) (4,760)
Share of the other comprehensive income of associates
and joint ventures accounted for using the equity
method 83 (250)
OTHER COMPREHENSIVE INCOME, NET OF TAX (784) (4,960)
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD 15,265 10,252
PROFIT FOR THE PERIOD ATTRIBUTABLE TO:
Owners of the Company 10,255 10,153
Non-controlling interests 5,794 5,059
16,049 15,212
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD ATTRIBUTABLE TO:
Owners of the Company 10,355 6,353
Non-controlling interests 4,910 3,899
15,265 10,252
BASIC AND DILUTED EARNINGS PER SHARE
ATTRIBUTABLE TO OWNERS OF THE
COMPANY (RMB YUAN) 0.056 0.055
26
2. Consolidated Statement of Financial Position
March 31, 2019 December 31, 2018
RMB million RMB million
NON-CURRENT ASSETS
Property, plant and equipment 1,675,089 1,705,901
Investments in associates and joint ventures 91,687 89,362
Financial assets measured at fair value through other
comprehensive income 917 738
Advance operating lease payments - 78,240
Right-of-use assets 241,539 -
Intangible and other non-current assets 97,693 98,298
Deferred tax assets 24,967 23,498
Time deposits with maturities over one year 3,130 3,101
TOTAL NON-CURRENT ASSETS 2,135,022 1,999,138
CURRENT ASSETS
Inventories 169,947 174,586
Accounts receivable 79,903 58,507
Prepayments and other current assets 113,529 88,594
Notes receivable 11,678 16,308
Time deposits with maturities over three months but
within one year 8,067 9,535
Cash and cash equivalents 116,014 85,598
TOTAL CURRENT ASSETS 499,138 433,128
CURRENT LIABILITIES
Accounts payable and accrued liabilities 287,315 297,828
Contract liabilities 76,529 68,076
Income taxes payable 13,140 5,728
Other taxes payable 55,199 77,016
Short-term borrowings 135,490 137,738
TOTAL CURRENT LIABILITIES 567,673 586,386
NET CURRENT LIABILITIES (68,535) (153,258)
TOTAL ASSETS LESS CURRENT LIABILITIES 2,066,487 1,845,880
EQUITY
EQUITY ATTRIBUTABLE TO OWNERS OF
THE COMPANY:
Share capital 183,021 183,021
Retained earnings 742,437 732,182
Reserves 300,436 299,083
TOTAL EQUITY ATTRIBUTABLE TO OWNERS
OF THE COMPANY
1,225,894 1,214,286
NON-CONTROLLING INTERESTS 200,525 196,372
TOTAL EQUITY 1,426,419 1,410,658
NON-CURRENT LIABILITIES
Long-term borrowings 311,045 269,422
Asset retirement obligations 134,513 132,780
Lease liabilities 163,171 -
Deferred tax liabilities 17,273 17,015
Other long-term obligations 14,066 16,005
TOTAL NON-CURRENT LIABILITIES 640,068 435,222
TOTAL EQUITY AND NON-CURRENT
LIABILITIES
2,066,487 1,845,880
Chairman Director and President Chief Financial Officer
Wang Yilin Hou Qijun Chai Shouping
27
3. Consolidated Statement of Cash Flows
Three months ended March 31
2019 2018
RMB million RMB million
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period 16,049 15,212
Adjustments for:
Income tax expense 8,539 9,081
Depreciation, depletion and amortisation 55,010 51,483
Capitalised exploratory costs charged to expense 3,014 1,552
Safety fund reserve 1,284 1,111
Share of profit of associates and joint ventures (2,341) (2,088)
Provision for impairment of receivables, net 92 (2)
Write down in inventories, net (6) 6
Loss/(gain) on disposal of property, plant
and equipment 45 (67)
Gain on disposal of other non-current assets (80) (9)
Interest income (797) (581)
Interest expense 7,602 5,593
Changes in working capital:
Accounts receivable, prepayments and other current
assets (35,269) (30,521)
Inventories 4,693 (1,048)
Accounts payable and accrued liabilities 23,638 24,513
Contract liabilities (8,453) 823
CASH FLOWS GENERATED FROM OPERATIONS 73,020 75,058
Income taxes paid (10,998) (13,256)
NET CASH FLOWS FROM OPERATING
ACTIVITIES 62,022 61,802
28
3. Consolidated Statement of Cash Flows (Continued)
Three months ended March 31
2019 2018
RMB million RMB million
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (58,942) (57,120)
Acquisition of investments in associates and joint ventures (96) (69)
Prepayments on long-term operating leases (901) (977)
Acquisition of intangible assets and other non-current assets (1,029) (1,184)
Proceeds from disposal of property, plant and equipment 52 16
Proceeds from disposal of other non-current assets 43 4
Interest received 476 421
Dividends received 304 626
Decrease in time deposits with maturities over three months 1,438 9,394
NET CASH FLOWS USED FOR INVESTING
ACTIVITIES
(58,655) (48,889)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of short-term borrowings (132,241) (155,882)
Repayments of long-term borrowings (62,790) (78,312)
Payments of lease liabilities (7,268) -
Interest paid (5,571) (5,924)
Dividends paid to non-controlling interests (472) (389)
Increase in short-term borrowings 170,099 158,506
Increase in long-term borrowings 66,259 73,938
Capital contribution from non-controlling interests 47 99
Decrease in other long-term obligations (10) (85)
NET CASH FLOWS FROM FINANCING ACTIVITIES 28,053 (8,049)
TRANSLATION OF FOREIGN CURRENCY (1,004) (2,071)
Increase in cash and cash equivalents 30,416 2,793
Cash and cash equivalents at beginning of the period 85,598 122,777
Cash and cash equivalents at end of the period 116,014 125,570
29
4. Segment Information
Three months ended March 31
2019 2018
RMB million RMB million
Revenue
Exploration and Production
Intersegment sales 123,570 115,486
Revenue from external customers 28,772 24,005
152,342 139,491
Refining and Chemicals
Intersegment sales 167,104 150,276
Revenue from external customers 43,502 46,533
210,606 196,809
Marketing
Intersegment sales 79,776 64,715
Revenue from external customers 412,925 381,489
492,701 446,204
Natural Gas and Pipeline
Intersegment sales 8,680 7,558
Revenue from external customers 105,666 90,492
114,346 98,050
Head Office and Other
Intersegment sales 34 8
Revenue from external customers 176 135
210 143
Total revenue from external customers 591,041 542,654
Profit from operations
Exploration and Production 14,326 9,741
Refining and Chemicals 2,999 8,441
Marketing 3,517 1,865
Natural Gas and Pipeline 12,582 11,187
Head Office and Other (3,987) (3,194)
29,437 28,040